Russia Admits Its Economy Is In Crisishttp://www.businessinsider.com/russias-deputy-economic-minister-warns-kremlin-economy-is-in-crisis-2014-3/comments
en-usWed, 31 Dec 1969 19:00:00 -0500Tue, 03 Mar 2015 18:35:33 -0500Darya Korsunskaya and Lidia Kellyhttp://www.businessinsider.com/c/53287cff69beddbb5a1118c0yes, it is trueTue, 18 Mar 2014 13:06:07 -0400http://www.businessinsider.com/c/53287cff69beddbb5a1118c0
No, whats pathetic are the moronic Putin trolls like you who wont accept reality. Putin's foolhardy actions will cause even greater isolation for Russia and cause even more damage to the already fragile Russian economy. More sanctions are coming, and the ones announced yesterday are just the beginning. When wealthy Russians start hemorrhaging money because of Putin's actions, there will likely be a coup against Putin and even his corrupt cronies will turn on him. What happened to Yanukovich in Ukraine can easily happen to Putin in Russia. Again, he did not think this through and while he can try to use gas to threaten the EU, it wont work because America and the Middle East are salivating at the idea of selling more gas to Europe.http://www.businessinsider.com/c/53274252eab8ea6820a0614brjb_bostonMon, 17 Mar 2014 14:43:30 -0400http://www.businessinsider.com/c/53274252eab8ea6820a0614b
mr putin and his one trick pony economy are soon going to be broke! he keeps using the "i'll cut off your gas" threat and now the wise are getting their gas from elsewhere.http://www.businessinsider.com/c/53271872eab8ea2f0aa06148IamInTheCloudsMon, 17 Mar 2014 11:44:50 -0400http://www.businessinsider.com/c/53271872eab8ea2f0aa06148
They should have thought longer. All they are doing is pushing their biggest customers who have cash to pay to find alternative sources for energy needs. The alternatives are more expensive than the pipeline from Russia, but those will essentially be one time costs to make sure they have stable access to energy. What is Russia going to do if they lose that revenue? Plus the pain of the sanctions that the U.S. and EU will impose.http://www.businessinsider.com/c/532713136bb3f72f30bdf84eEmpty Russian ThreatsMon, 17 Mar 2014 11:21:55 -0400http://www.businessinsider.com/c/532713136bb3f72f30bdf84e
"Iran sanctions: They work, so keep them"
<a href="http://www.cnbc.com/id/100924712" target="_blank" rel="nofollow" >http://www.cnbc.com/id/100924712</a>
"Putin's power play jeopardizes Eurasian Union plans"
<a href="http://www.dw.de/putins-power-play-jeopardizes-eurasian-union-plans/a-17493164" target="_blank" rel="nofollow" >http://www.dw.de/putins-power-play-jeopardizes-eurasian-union-plans/a-17493164</a>
"Shifting energy trends blunt Russia’s natural-gas weapon"
<a href="http://www.washingtonpost.com/business/economy/shifting-energy-trends-blunt-russias-natural-gas-weapon/2014/02/28/7d090062-9ef7-11e3-a050-dc3322a94fa7_story.html" target="_blank" rel="nofollow" >http://www.washingtonpost.com/business/economy/shifting-energy-trends-blunt-russias-natural-gas-weapon/2014/02/28/7d090062-9ef7-11e3-a050-dc3322a94fa7_story.html</a>
"Qatar to Boost Europe LNG Sales as Gas Trades at 7-Year High"
<a href="http://www.bloomberg.com/news/2013-12-23/qatar-to-boost-european-lng-sales-as-gas-trades-at-7-year-high.html" target="_blank" rel="nofollow" >http://www.bloomberg.com/news/2013-12-23/qatar-to-boost-european-lng-sales-as-gas-trades-at-7-year-high.html</a>http://www.businessinsider.com/c/532710f16bb3f75826bdf852Empty Russian ThreatsMon, 17 Mar 2014 11:12:49 -0400http://www.businessinsider.com/c/532710f16bb3f75826bdf852
Oh boy, will you be proven wrong when the Western sanctions actually hit the Russian economy. Even with the threat of sanctions, the Russian economy is already in crisis, as admitted by Sergei Belyakov. The fact that you say that Iranian sanctions were 'porous' says it all. You evidently have no clue about the truly disastrous consequences of the Western sanctions on the Iranian economy at all. I suggest you speak with some ordinary Iranians and ask how 'porous' the sanctions were. Even the Iranian leadership is at the negotiation table again. It seems Russians just never learn. First the Soviet Union, now Russia.
As for Crimea, you are terribly mistaken about that, too. Capturing it was a strategic blunder of epic proportions. Russia gained a small island, but lost Ukraine. And since Russia lost Ukraine, Putin's Eurasion Union is dead in the water. The relationship with the West - the paymaster of the Russian economy - is spoilt as well, and even the generally pro-Russian Chinese didn't support the invasion. All for an unimportant naval port. Unimportant, I say, since the Russian city of Novorossiysk could have been used as a naval port instead.
And no, LNG as a substitution for Russian gas isn't a myth. Europe has dozens of LNG terminals already, and many more are being constructed as we speak. If the Russians cut gas to Europe, Europe would simply buy gas from Qatar. Yes, this would have some negative consequences, like a slightly higher price, but the real negative consequences would be felt on the Russian side. The Russian economy relies on the European economy with half a billion consumers. If Russian gas stops, the flow of billions of euros to Russia would stop as well.http://www.businessinsider.com/c/53270c1d69beddc84c27429dtrevor.gardner85Mon, 17 Mar 2014 10:52:13 -0400http://www.businessinsider.com/c/53270c1d69beddc84c27429d
I love that you're so sure of the future, yet you can't even figure out the past or present. Just because YOU have no idea why Putin did what he did doesn't mean he didn't think it through. It just means you're incredibly dense because it couldn't be more obvious why he did what he did.
You couldn't be more biased if you tried. It's quite pathetic.http://www.businessinsider.com/c/53270b536bb3f7c00abdf85ctrevor.gardner85Mon, 17 Mar 2014 10:48:51 -0400http://www.businessinsider.com/c/53270b536bb3f7c00abdf85c
If you think Russia's actions in Ukraine were nothing more than a "whim", you're a moron. They have certainly put more thought into what they're doing than the US government put into helping to topple the Ukrainian government.http://www.businessinsider.com/c/5327068eecad04891fa6d9eaRunt Kings RuleMon, 17 Mar 2014 10:28:30 -0400http://www.businessinsider.com/c/5327068eecad04891fa6d9ea
Typical economic, static, snapshot analysis, that does not take into account second order effects. Take for example, the severe sanctions placed against Iran; they had some impact but ultimately were porous and western interests lost out to eastern interests who were more than happy to provide substitute goods. Russia cares less about their equity markets than the US since most of their wealth creation is from the sale of Oil, Gas, Minerals, Industry etc. The US, except for Agriculture, produces nothing. Russia will be initially hurt but will handle sanctions much better than Iran.
Moreover, capturing Crimea was a brilliant Russian blocking move, locking up the most valuable real estate in Ukraine, securing huge offshore gas and oil fields, reducing costs for the buildout of South Stream, preventing NATO from occupying Sevastopol, and discrediting the weak, unelected government in Kiev.
With respect to gas substitutes, this is simply a myth in the short run. There are no US LNG gas exports available today, and other suppliers are operating at full capacity, with declining reserves.
Europe is barely recovering from years of recession, and the rest of the world is little better off.http://www.businessinsider.com/c/5326ff84eab8ea8829a0614eEmpty Russian ThreatsMon, 17 Mar 2014 09:58:28 -0400http://www.businessinsider.com/c/5326ff84eab8ea8829a0614e
Terrible article. Written by a Russian, so not really surprised. It doesn't at all address the indisputable fact that Russia NEEDS the European money. Some 60 percent of Russia's state income is due to oil, gas and coal sales. If Russia cuts gas deliveries to Europe, Europe would stop transferring billions of euros to Russia. It's that simple. Russia relies on the European consumer. What's so hard to understand about that? Moreover, the article actually acknowledges that Europe has an alternative: LNG from Qatar and other places. The only downside is slightly higher prices, but I'm sure Europe would cope with that.http://www.businessinsider.com/c/5326fbd66da8112126d9dacbYallyohMon, 17 Mar 2014 09:42:46 -0400http://www.businessinsider.com/c/5326fbd66da8112126d9dacb
Dream on Informed.
<a href="http://www.forbes.com/sites/danielfisher/2014/03/05/can-russia-play-its-trump-card-gas-to-beat-eu-sanctions/" target="_blank" rel="nofollow" >http://www.forbes.com/sites/danielfisher/2014/03/05/can-russia-play-its-trump-card-gas-to-beat-eu-sanctions/</a>
<a href="http://www.miamiherald.com/2014/03/16/3998968/europe-fears-its-dependency-on.html" target="_blank" rel="nofollow" >http://www.miamiherald.com/2014/03/16/3998968/europe-fears-its-dependency-on.html</a>http://www.businessinsider.com/c/5326f9d069beddbc082742a8Empty Russian ThreatsMon, 17 Mar 2014 09:34:08 -0400http://www.businessinsider.com/c/5326f9d069beddbc082742a8
"What planet do you live on?"
I'm living on this planet, but you are clearly not. I suggest you read this article:
"Europe has little reason to fear Russian gas cut-off"
<a href="http://www.dw.de/europe-has-little-reason-to-fear-russian-gas-cut-off/a-17480530" target="_blank" rel="nofollow" >http://www.dw.de/europe-has-little-reason-to-fear-russian-gas-cut-off/a-17480530</a>
Europe has nothing to fear. The Russian threats are empty.http://www.businessinsider.com/c/5326f8aeecad04696da6d9e2Empty Russian ThreatsMon, 17 Mar 2014 09:29:18 -0400http://www.businessinsider.com/c/5326f8aeecad04696da6d9e2
Something else entirely, but quite relevant in the medium term and long term when it comes to reliance on Russian gas, is the massive switch to renewable energy sources in Europe and the exploitation of shale deposits in the United States. Thanks to the 'Energiewende', Germany gets 25 percent of its electricity from renewable energy sources already, and thanks to shale gas, the United States is quickly becoming energy independent. These revolutions on the renewable energy and shale front are only the beginning. There's another technology on the horizon which will make Russia weaker still: underground coal gasification.
<a href="http://www.theoildrum.com/node/8184" target="_blank" rel="nofollow" >http://www.theoildrum.com/node/8184</a>
Or what to think of methane hydrate extraction? The Japanese succeeded in it not long ago.
<a href="http://www.nytimes.com/2013/09/17/science/earth/unlocking-the-potential-of-flammable-ice.html" target="_blank" rel="nofollow" >http://www.nytimes.com/2013/09/17/science/earth/unlocking-the-potential-of-flammable-ice.html</a>
So I really hope for the Russians that they're in the economic diversification process. If not, they're in for some very hard times indeed.http://www.businessinsider.com/c/5326f81aecad044668a6d9e2Basil TMon, 17 Mar 2014 09:26:50 -0400http://www.businessinsider.com/c/5326f81aecad044668a6d9e2
Superficial article written probably under short notice. Many economies are in crisis. Our economy cannot be considered an example of durability but a fragile and dangerous debt overload system that could at any moment go on a free downfall. Yes, maybe the Russian economy has its weaknesses and challenges but one can argue ours are worse (argument here not saying ours is worse). Lastly, such statements are good for public consumption but some of us who are a little bit older and more experienced in matters of finance and economics, we know that is not so simple. For the people who still look at Russia as a Soviet state, you have either limited exposure to Russia, its people and system, and worse substantial lack of understanding how media (all around the globe) works.http://www.businessinsider.com/c/5326f7efeab8ea280fa06143YallyohMon, 17 Mar 2014 09:26:07 -0400http://www.businessinsider.com/c/5326f7efeab8ea280fa06143
What planet do you live on? Germany alone accounts for thirty percent of Russian gas, and there are 27 other countries that rely on Russian gas. Pick up some foreign news in English, Europe is going green and they are track to meet their goals. It's not enough to purchase gas elsewhere, you have to get it to the consumer - that's the problem.http://www.businessinsider.com/c/5326f53eeab8eaa804a06143YallyohMon, 17 Mar 2014 09:14:38 -0400http://www.businessinsider.com/c/5326f53eeab8eaa804a06143
Have you been keeping track of the drought conditions in the US and Australia? The floods in Europe?
The IMF will support Ukraine farmers? Don't hold your breath waiting.http://www.businessinsider.com/c/5326f39e69beddca602742a8yes, it is trueMon, 17 Mar 2014 09:07:42 -0400http://www.businessinsider.com/c/5326f39e69beddca602742a8
This is what happens in the modern world when you invade and takeover sovereign nations without the support of other nations behind you. Now watch as the US delivers sanctions that further decimate the Russian economy and bring about even more turmoil. Putin was very stupid and really didnt think this through very well...and for what? Pride? Arrogance? All the topless pictures on a horse in the world wont fix this huge mess he carelessly made. Putin made his bed, and now he must lay in it. I feel some what sorry for the Russian people as they are the ones who will truly suffer, as Putin has plundered their wealth and has all the money anyone could truly want. But the fault also lies with the Russian people as they are the ones who continue to allow a tyrannical despot to rule and subjugate them.http://www.businessinsider.com/c/5326f2f66bb3f7cb3ebdf84eWHRMon, 17 Mar 2014 09:04:54 -0400http://www.businessinsider.com/c/5326f2f66bb3f7cb3ebdf84e
Yes but, do we want the equivalent of a Venezuela with nukes, the ability to deliver them and a delusional leader?http://www.businessinsider.com/c/5326f2b26bb3f7673ebdf850Czar PutinMon, 17 Mar 2014 09:03:46 -0400http://www.businessinsider.com/c/5326f2b26bb3f7673ebdf850
You Melicans are so dense. Have I been friendly at all? Have I cooperated on any major issue? Have I changed at all? Yet, you continue to butt your heads against my brick wall. It is the same vit the Chicoms. You continue to try to act as if they are not commies. Duhhhhhh, they are commies like me......you dumbkoffs!http://www.businessinsider.com/c/5326f225eab8ea1f72a06147Empty Russian ThreatsMon, 17 Mar 2014 09:01:25 -0400http://www.businessinsider.com/c/5326f225eab8ea1f72a06147
"I think you have your European gas reliance on Russia all wrong."
Nah, everything I've said is the truth. If you don't believe me, just Google. European reliance on Russian gas is enormously overstated. Yes, the European Union buys roughly 30 percent of its gas from Russia, but not because Europe relies on Russia, but because the price is right. If Russia becomes a difficult seller, Europe will just buy it from other places instead. Alternatively, Europe will reduce its reliance on gas entirely, and just switch to an energy mix with more oil, coal, nuclear and renewable sources. If Russian gas deliveries to Europe stop tomorrow, it really wouldn't be much of a problem due to the strategic reserves, which contain enough for 4 months or so. Moreover, the winter is over now and gas consumption will be relatively low the coming months anyway, so maybe there's even enough for 5-6 months. And that's assuming that Europe will wait till the strategic reserves are empty, but in reality, Europe will obviously immediately find other sellers, like the United States, Qatar, Algeria, Norway, etcetera.
On the other hand, Russia will feel the pain right away. The Russian economy is overreliant on the income from gas sales. If they stop gas deliveries to Europe, Europe will stop paying for it. The Russian economy would be in a recession, if not depression, right away. It's economic suicide. Russia relies on Europe a lot more than Europe relies on Russia. Therefore, the Russian threats are empty.http://www.businessinsider.com/c/5326f0b46bb3f73937bdf856troobleMon, 17 Mar 2014 08:55:16 -0400http://www.businessinsider.com/c/5326f0b46bb3f73937bdf856
8.75 interest rate or something like that? The rouble lost 10% one day? Now no dollar cushion to defend their currency?http://www.businessinsider.com/c/5326e968eab8ea8956a06143Jazzy_CMon, 17 Mar 2014 08:24:08 -0400http://www.businessinsider.com/c/5326e968eab8ea8956a06143
Plus the infrastructure to receive gas (LNG) is for the most part non existent and the pipelines with their multitude of owners can't do an effective reverse flow.
Since Putin pulled his last bitch trick of shutting off natural gas several years ago there has been a concerted effort in Europe to avail themselves to alternative supplies of natural gas.
I'm not sure where you got your information but here are list of European LNG regasification terminals:
Belgium
Zeebrugge, Fluxys
France
Fos-sur-Mer, Elengy
Montoir, Elengy
Fos Cavaou, Fosmax LNG
Greece
Revithoussa LNG Terminal, DEPA123456
Italy
Adriatic LNG, ExxonMobil, Qatar Petroleum, Edison SpA (offshore of Porto Viro, Porto Levante (area), Rovigo (province), Italy)
Panigaglia, Eni
Netherlands
Gate terminal, Rotterdam, opened September 2011
Spain
Barcelona (Enagás)
Bilbao (consortium including Enagás, Ente Vasco de la Energia and RREEF), see on a map
Huelva (Enagás), see on a map
Sagunto, Valencia (consortium including Iberdrola, Unión Fenosa and Endesa)
Cartagena (Enagás), see on a map
Ferrol (consortium including Unión Fenosa and Endesa)
Gijón (Enagás, starting in 2012)
United Kingdom
South Hook LNG, Milford Haven, South Wales
Dragon LNG terminal, Milford Haven, South Wales
Grain LNG, Isle of Grain, Kent
Canvey LNG, Thames Road, Essex
Gasport Teesside, Middlebrough
There is a difference between an opinion and an INFORMED OPINION.http://www.businessinsider.com/c/5326e7e3eab8ea314ea06147nixoMon, 17 Mar 2014 08:17:39 -0400http://www.businessinsider.com/c/5326e7e3eab8ea314ea06147
Yea, the ruble will continue to loose value. If things continue, Russia will go the way of Venezuela in short order.http://www.businessinsider.com/c/5326e4f0ecad040028a6d9e3Jazzy_CMon, 17 Mar 2014 08:05:04 -0400http://www.businessinsider.com/c/5326e4f0ecad040028a6d9e3
Who are the top grain exporters? US, Canada, EU, Australia, oh and Ukraine. No one will be going hungry if sanctions hit.
The gate swings both ways. Russia is the number 2 beef and veal importer in the world.
They are the second largest importers of swine meat.
They are the fifth largest importer of diary, and dry whole milk powder imports.
The Russian consumer will already start to take a hit due to declining value of the ruble. Import restrictions would drive prices up in even higher in Russia.http://www.businessinsider.com/c/5326e0f56da811572fd9dad4nixoMon, 17 Mar 2014 07:48:05 -0400http://www.businessinsider.com/c/5326e0f56da811572fd9dad4
Who are the top grain exporters? US, Canada, EU, Australia, oh and Ukraine. No one will be going hungry if sanctions hit.http://www.businessinsider.com/c/5326d6e66bb3f7ab51bdf853YallyohMon, 17 Mar 2014 07:05:10 -0400http://www.businessinsider.com/c/5326d6e66bb3f7ab51bdf853
President Putin has said that any western sanctions will be a boom-a-rang. I suppose the Europeans can do without bread for awhile and the Americans too. There was hardly any winter wheat crop planted in the US last year.http://www.businessinsider.com/c/5326d56469bedd8477274299YallyohMon, 17 Mar 2014 06:58:44 -0400http://www.businessinsider.com/c/5326d56469bedd8477274299
I think you have your European gas reliance on Russia all wrong. Plus the infrastructure to receive gas (LNG) is for the most part non existent and the pipelines with their multitude of owners can't do an effective reverse flow.http://www.businessinsider.com/c/5326d2146bb3f75341bdf851nixoMon, 17 Mar 2014 06:44:36 -0400http://www.businessinsider.com/c/5326d2146bb3f75341bdf851
As Obama and Merkel have said, the sanctions will be painful, and they begin on Monday.http://www.businessinsider.com/c/5326d1436bb3f79b40bdf858Russia's Economic MeltdownMon, 17 Mar 2014 06:41:07 -0400http://www.businessinsider.com/c/5326d1436bb3f79b40bdf858
Not good. And that's without Western sanctions. Imagine what will happen if the West follows through with that. Yes, Russia said it will 'mirror' sanctions, but that's just an empty threat. The West contributes easily over 60 percent to global GDP; probably a lot more. Compared to the West, the Russian economy is an economic midget. The Russians can't mirror sanctions.
Russia will cut gas to the West people might say, but that's only economic suicide. Some 60 percent of Russia's state income is due to oil, gas and coal sales. Russia relies on the West a lot more than the West relies on Russia. Even the European Union gets just 30 percent of its gas from Russia. If Russian gas deliveries stop, the EU could just use strategic reserves - which contain enough for four months - and buy gas from the United States, Qatar, Algeria, Norway, and many other places instead. The EU wouldn't be affected much. The Russian economy, on the other hand, would collapse immediately. They need the income.